Florida Senate - 2018                                     SB 354
       
       
        
       By Senator Stargel
       
       
       
       
       
       22-00468-18                                            2018354__
    1                        A bill to be entitled                      
    2         An act relating to government accountability; amending
    3         s. 11.40, F.S.; specifying that the Governor, the
    4         Commissioner of Education, or the designee of the
    5         Governor or of the commissioner, may notify the
    6         Legislative Auditing Committee of an entity’s failure
    7         to comply with certain auditing and financial
    8         reporting requirements; amending s. 11.45, F.S.;
    9         defining the terms “abuse,” “fraud,” and “waste”;
   10         revising definitions; excluding water management
   11         districts from certain audit requirements; removing a
   12         cross-reference; authorizing the Auditor General to
   13         conduct audits of tourist development councils and
   14         county tourism promotion agencies; revising reporting
   15         requirements applicable to the Auditor General;
   16         amending s. 28.35, F.S.; revising reporting
   17         requirements applicable to the Florida Clerks of Court
   18         Operations Corporation; amending s. 43.16, F.S.;
   19         revising the responsibilities of the Justice
   20         Administrative Commission, each state attorney, each
   21         public defender, the criminal conflict and civil
   22         regional counsel, the capital collateral regional
   23         counsel, and the Guardian Ad Litem Program, to include
   24         the establishment and maintenance of certain internal
   25         controls; amending s. 112.061, F.S.; revising certain
   26         lodging rates for the purpose of reimbursement to
   27         specified employees; authorizing an employee to expend
   28         his or her funds for certain lodging expenses;
   29         defining the term “statewide travel management
   30         system”; requiring agencies and the judicial branch to
   31         report certain travel information of public officers
   32         and employees in the statewide travel management
   33         system; requiring executive branch state agencies and
   34         the judicial branch to use the statewide travel
   35         management system for certain purposes; amending ss.
   36         129.03, 129.06, and 166.241, F.S.; requiring counties
   37         and municipalities to maintain certain budget
   38         documents on the entities’ websites for a specified
   39         period; amending s. 215.86, F.S.; revising the
   40         purposes for which management systems and internal
   41         controls must be established and maintained by each
   42         state agency and the judicial branch; amending s.
   43         215.97, F.S.; revising certain audit threshold
   44         requirements; amending s. 215.985, F.S.; revising the
   45         requirements for a monthly financial statement
   46         provided by a water management district; amending s.
   47         218.32, F.S.; revising the requirements of the annual
   48         financial audit report of a local governmental entity;
   49         authorizing the Department of Financial Services to
   50         request additional information from a local
   51         governmental entity; requiring a local governmental
   52         entity to respond to such requests within a specified
   53         timeframe; requiring the department to notify the
   54         Legislative Auditing Committee of noncompliance;
   55         amending s. 218.33, F.S.; requiring local governmental
   56         entities to establish and maintain internal controls
   57         to achieve specified purposes; amending s. 218.39,
   58         F.S.; requiring an audited entity to respond to audit
   59         recommendations under specified circumstances;
   60         amending s. 218.391, F.S.; revising membership for the
   61         audit committee; prohibiting an audit committee member
   62         from being an employee, a chief executive officer, or
   63         a chief financial officer of the respective
   64         governmental entity; requiring an auditor to include
   65         certain information in a management letter; requiring
   66         the chair of a governmental entity’s governing body to
   67         submit an affidavit containing certain information
   68         when the entity contracts with an auditor to conduct
   69         an audit; providing requirements and procedures for
   70         selecting an auditor; requiring the Legislative
   71         Auditing Committee to determine whether a governmental
   72         entity should be subject to state action under certain
   73         circumstances; amending s. 286.0114, F.S.; prohibiting
   74         a board or commission from requiring an advance copy
   75         of testimony or comments from a member of the public
   76         as a precondition to being given the opportunity to be
   77         heard at a public meeting; amending s. 373.536, F.S.;
   78         deleting obsolete language; requiring water management
   79         districts to maintain certain budget documents on the
   80         districts’ websites for a specified period; amending
   81         s. 1001.42, F.S.; authorizing additional internal
   82         audits as directed by the district school board;
   83         amending s. 1002.33, F.S.; revising the
   84         responsibilities of the governing board of a charter
   85         school to include the establishment and maintenance of
   86         internal controls; amending s. 1002.37, F.S.;
   87         requiring completion of an annual financial audit of
   88         the Florida Virtual School; specifying audit
   89         requirements; requiring an audit report to be
   90         submitted to the board of trustees of the Florida
   91         Virtual School and the Auditor General; deleting
   92         obsolete provisions; amending s. 1010.01, F.S.;
   93         requiring each school district, Florida College System
   94         institution, and state university to establish and
   95         maintain certain internal controls; amending s.
   96         1010.30, F.S.; requiring a district school board,
   97         Florida College System institution board of trustees,
   98         or university board of trustees to respond to audit
   99         recommendations under certain circumstances; amending
  100         s. 218.503, F.S.; conforming provisions and cross
  101         references to changes made by the act; declaring that
  102         the act fulfills an important state interest;
  103         providing an effective date.
  104          
  105  Be It Enacted by the Legislature of the State of Florida:
  106  
  107         Section 1. Subsection (2) of section 11.40, Florida
  108  Statutes, is amended to read:
  109         11.40 Legislative Auditing Committee.—
  110         (2) Following notification by the Auditor General, the
  111  Department of Financial Services, or the Division of Bond
  112  Finance of the State Board of Administration, the Governor or
  113  his or her designee, or the Commissioner of Education or his or
  114  her designee of the failure of a local governmental entity,
  115  district school board, charter school, or charter technical
  116  career center to comply with the applicable provisions within s.
  117  11.45(5)-(7), s. 218.32(1), s. 218.38, or s. 218.503(3), the
  118  Legislative Auditing Committee may schedule a hearing to
  119  determine if the entity should be subject to further state
  120  action. If the committee determines that the entity should be
  121  subject to further state action, the committee shall:
  122         (a) In the case of a local governmental entity or district
  123  school board, direct the Department of Revenue and the
  124  Department of Financial Services to withhold any funds not
  125  pledged for bond debt service satisfaction which are payable to
  126  such entity until the entity complies with the law. The
  127  committee shall specify the date that such action must shall
  128  begin, and the directive must be received by the Department of
  129  Revenue and the Department of Financial Services 30 days before
  130  the date of the distribution mandated by law. The Department of
  131  Revenue and the Department of Financial Services may implement
  132  the provisions of this paragraph.
  133         (b) In the case of a special district created by:
  134         1. A special act, notify the President of the Senate, the
  135  Speaker of the House of Representatives, the standing committees
  136  of the Senate and the House of Representatives charged with
  137  special district oversight as determined by the presiding
  138  officers of each respective chamber, the legislators who
  139  represent a portion of the geographical jurisdiction of the
  140  special district, and the Department of Economic Opportunity
  141  that the special district has failed to comply with the law.
  142  Upon receipt of notification, the Department of Economic
  143  Opportunity shall proceed pursuant to s. 189.062 or s. 189.067.
  144  If the special district remains in noncompliance after the
  145  process set forth in s. 189.0651, or if a public hearing is not
  146  held, the Legislative Auditing Committee may request the
  147  department to proceed pursuant to s. 189.067(3).
  148         2. A local ordinance, notify the chair or equivalent of the
  149  local general-purpose government pursuant to s. 189.0652 and the
  150  Department of Economic Opportunity that the special district has
  151  failed to comply with the law. Upon receipt of notification, the
  152  department shall proceed pursuant to s. 189.062 or s. 189.067.
  153  If the special district remains in noncompliance after the
  154  process set forth in s. 189.0652, or if a public hearing is not
  155  held, the Legislative Auditing Committee may request the
  156  department to proceed pursuant to s. 189.067(3).
  157         3. Any manner other than a special act or local ordinance,
  158  notify the Department of Economic Opportunity that the special
  159  district has failed to comply with the law. Upon receipt of
  160  notification, the department shall proceed pursuant to s.
  161  189.062 or s. 189.067(3).
  162         (c) In the case of a charter school or charter technical
  163  career center, notify the appropriate sponsoring entity, which
  164  may terminate the charter pursuant to ss. 1002.33 and 1002.34.
  165         Section 2. Subsection (1), paragraph (j) of subsection (2),
  166  paragraph (u) of subsection (3), and paragraph (i) of subsection
  167  (7) of section 11.45, Florida Statutes, are amended, and
  168  paragraph (x) is added to subsection (3) of that section, to
  169  read:
  170         11.45 Definitions; duties; authorities; reports; rules.—
  171         (1) DEFINITIONS.—As used in ss. 11.40-11.51, the term:
  172         (a)“Abuse” means behavior that is deficient or improper
  173  when compared with behavior that a prudent person would consider
  174  a reasonable and necessary operational practice given the facts
  175  and circumstances. The term includes the misuse of authority or
  176  position for personal gain.
  177         (b)(a) “Audit” means a financial audit, operational audit,
  178  or performance audit.
  179         (c)(b) “County agency” means a board of county
  180  commissioners or other legislative and governing body of a
  181  county, however styled, including that of a consolidated or
  182  metropolitan government, a clerk of the circuit court, a
  183  separate or ex officio clerk of the county court, a sheriff, a
  184  property appraiser, a tax collector, a supervisor of elections,
  185  or any other officer in whom any portion of the fiscal duties of
  186  a body or officer expressly stated in this paragraph are the
  187  above are under law separately placed by law.
  188         (d)(c) “Financial audit” means an examination of financial
  189  statements in order to express an opinion on the fairness with
  190  which they are presented in conformity with generally accepted
  191  accounting principles and an examination to determine whether
  192  operations are properly conducted in accordance with legal and
  193  regulatory requirements. Financial audits must be conducted in
  194  accordance with auditing standards generally accepted in the
  195  United States and government auditing standards as adopted by
  196  the Board of Accountancy. When applicable, the scope of
  197  financial audits must shall encompass the additional activities
  198  necessary to establish compliance with the Single Audit Act
  199  Amendments of 1996, 31 U.S.C. ss. 7501-7507, and other
  200  applicable federal law.
  201         (e)“Fraud” means obtaining something of value through
  202  willful misrepresentation, including, but not limited to, the
  203  intentional misstatements or intentional omissions of amounts or
  204  disclosures in financial statements to deceive users of
  205  financial statements, theft of an entity’s assets, bribery, or
  206  the use of one’s position for personal enrichment through the
  207  deliberate misuse or misapplication of an organization’s
  208  resources.
  209         (f)(d) “Governmental entity” means a state agency, a county
  210  agency, or any other entity, however styled, that independently
  211  exercises any type of state or local governmental function.
  212         (g)(e) “Local governmental entity” means a county agency,
  213  municipality, tourist development council, county tourism
  214  promotion agency, or special district as defined in s. 189.012.
  215  The term, but does not include any housing authority established
  216  under chapter 421.
  217         (h)(f) “Management letter” means a statement of the
  218  auditor’s comments and recommendations.
  219         (i)(g) “Operational audit” means an audit whose purpose is
  220  to evaluate management’s performance in establishing and
  221  maintaining internal controls, including controls designed to
  222  prevent and detect fraud, waste, and abuse, and in administering
  223  assigned responsibilities in accordance with applicable laws,
  224  administrative rules, contracts, grant agreements, and other
  225  guidelines. Operational audits must be conducted in accordance
  226  with government auditing standards. Such audits examine internal
  227  controls that are designed and placed in operation to promote
  228  and encourage the achievement of management’s control objectives
  229  in the categories of compliance, economic and efficient
  230  operations, reliability of financial records and reports, and
  231  safeguarding of assets, and identify weaknesses in those
  232  internal controls.
  233         (j)(h) “Performance audit” means an examination of a
  234  program, activity, or function of a governmental entity,
  235  conducted in accordance with applicable government auditing
  236  standards or auditing and evaluation standards of other
  237  appropriate authoritative bodies. The term includes an
  238  examination of issues related to:
  239         1. Economy, efficiency, or effectiveness of the program.
  240         2. Structure or design of the program to accomplish its
  241  goals and objectives.
  242         3. Adequacy of the program to meet the needs identified by
  243  the Legislature or governing body.
  244         4. Alternative methods of providing program services or
  245  products.
  246         5. Goals, objectives, and performance measures used by the
  247  agency to monitor and report program accomplishments.
  248         6. The accuracy or adequacy of public documents, reports,
  249  or requests prepared under the program by state agencies.
  250         7. Compliance of the program with appropriate policies,
  251  rules, or laws.
  252         8. Any other issues related to governmental entities as
  253  directed by the Legislative Auditing Committee.
  254         (k)(i) “Political subdivision” means a separate agency or
  255  unit of local government created or established by law and
  256  includes, but is not limited to, the following and the officers
  257  thereof: authority, board, branch, bureau, city, commission,
  258  consolidated government, county, department, district,
  259  institution, metropolitan government, municipality, office,
  260  officer, public corporation, town, or village.
  261         (l)(j) “State agency” means a separate agency or unit of
  262  state government created or established by law and includes, but
  263  is not limited to, the following and the officers thereof:
  264  authority, board, branch, bureau, commission, department,
  265  division, institution, office, officer, or public corporation,
  266  as the case may be, except any such agency or unit within the
  267  legislative branch of state government other than the Florida
  268  Public Service Commission.
  269         (m)“Waste” means the act of using or expending resources
  270  unreasonably, carelessly, extravagantly, or for no useful
  271  purpose.
  272         (2) DUTIES.—The Auditor General shall:
  273         (j) Conduct audits of local governmental entities when
  274  determined to be necessary by the Auditor General, when directed
  275  by the Legislative Auditing Committee, or when otherwise
  276  required by law. No later than 18 months after the release of
  277  the audit report, the Auditor General shall perform such
  278  appropriate followup procedures as he or she deems necessary to
  279  determine the audited entity’s progress in addressing the
  280  findings and recommendations contained within the Auditor
  281  General’s previous report. The Auditor General shall notify each
  282  member of the audited entity’s governing body and the
  283  Legislative Auditing Committee of the results of his or her
  284  determination. For purposes of this paragraph, local
  285  governmental entities do not include water management districts.
  286  
  287  The Auditor General shall perform his or her duties
  288  independently but under the general policies established by the
  289  Legislative Auditing Committee. This subsection does not limit
  290  the Auditor General’s discretionary authority to conduct other
  291  audits or engagements of governmental entities as authorized in
  292  subsection (3).
  293         (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor
  294  General may, pursuant to his or her own authority, or at the
  295  direction of the Legislative Auditing Committee, conduct audits
  296  or other engagements as determined appropriate by the Auditor
  297  General of:
  298         (u) The Florida Virtual School pursuant to s. 1002.37.
  299         (x)Tourist development councils and county tourism
  300  promotion agencies.
  301         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
  302         (i) The Auditor General shall annually transmit by July 15,
  303  to the President of the Senate, the Speaker of the House of
  304  Representatives, and the Department of Financial Services, a
  305  list of all school districts, charter schools, charter technical
  306  career centers, Florida College System institutions, state
  307  universities, and local governmental entities water management
  308  districts that have failed to comply with the transparency
  309  requirements as identified in the audit reports reviewed
  310  pursuant to paragraph (b) and those conducted pursuant to
  311  subsection (2).
  312         Section 3. Paragraph (d) of subsection (2) of section
  313  28.35, Florida Statutes, is amended to read:
  314         28.35 Florida Clerks of Court Operations Corporation.—
  315         (2) The duties of the corporation shall include the
  316  following:
  317         (d) Developing and certifying a uniform system of workload
  318  measures and applicable workload standards for court-related
  319  functions as developed by the corporation and clerk workload
  320  performance in meeting the workload performance standards. These
  321  workload measures and workload performance standards shall be
  322  designed to facilitate an objective determination of the
  323  performance of each clerk in accordance with minimum standards
  324  for fiscal management, operational efficiency, and effective
  325  collection of fines, fees, service charges, and court costs. The
  326  corporation shall develop the workload measures and workload
  327  performance standards in consultation with the Legislature. When
  328  the corporation finds a clerk has not met the workload
  329  performance standards, the corporation shall identify the nature
  330  of each deficiency and any corrective action recommended and
  331  taken by the affected clerk of the court. For quarterly periods
  332  ending on the last day of March, June, September, and December
  333  of each year, the corporation shall notify the Legislature of
  334  any clerk not meeting workload performance standards and provide
  335  a copy of any corrective action plans. Such notifications shall
  336  be submitted no later than 45 days after the end of the
  337  preceding quarterly period. As used in this subsection, the
  338  term:
  339         1. “Workload measures” means the measurement of the
  340  activities and frequency of the work required for the clerk to
  341  adequately perform the court-related duties of the office as
  342  defined by the membership of the Florida Clerks of Court
  343  Operations Corporation.
  344         2. “Workload performance standards” means the standards
  345  developed to measure the timeliness and effectiveness of the
  346  activities that are accomplished by the clerk in the performance
  347  of the court-related duties of the office as defined by the
  348  membership of the Florida Clerks of Court Operations
  349  Corporation.
  350         Section 4. Present subsections (6) and (7) of section
  351  43.16, Florida Statutes, are renumbered as subsections (7) and
  352  (8), respectively, and a new subsection (6) is added to that
  353  section, to read:
  354         43.16 Justice Administrative Commission; membership, powers
  355  and duties.—
  356         (6)The commission, each state attorney, each public
  357  defender, the criminal conflict and civil regional counsel, the
  358  capital collateral regional counsel, and the Guardian Ad Litem
  359  Program shall establish and maintain internal controls designed
  360  to:
  361         (a)Prevent and detect fraud, waste, and abuse as defined
  362  in s. 11.45(1).
  363         (b)Promote and encourage compliance with applicable laws,
  364  rules, contracts, grant agreements, and best practices.
  365         (c)Support economical and efficient operations.
  366         (d)Ensure reliability of financial records and reports.
  367         (e)Safeguard assets.
  368         Section 5. Subsection (6) of section 112.061, Florida
  369  Statutes, is amended, and subsection (16) is added to that
  370  section, to read:
  371         112.061 Per diem and travel expenses of public officers,
  372  employees, and authorized persons.—
  373         (6) RATES OF PER DIEM AND SUBSISTENCE ALLOWANCE.—For
  374  purposes of reimbursement rates and methods of calculation, per
  375  diem and subsistence allowances are provided as follows:
  376         (a) All travelers shall be allowed for subsistence when
  377  traveling to a convention or conference or when traveling within
  378  or outside the state in order to conduct bona fide state
  379  business, which convention, conference, or business serves a
  380  direct and lawful public purpose with relation to the public
  381  agency served by the person attending such meeting or conducting
  382  such business, either of the following for each day of such
  383  travel at the option of the traveler:
  384         1. Eighty dollars per diem; or
  385         2. If actual expenses exceed $80, the amounts permitted in
  386  paragraph (b) for subsistence, plus actual expenses for lodging
  387  at a single-occupancy rate, except as provided in paragraph (c),
  388  to be substantiated by paid bills therefor.
  389  
  390  When lodging or meals are provided at a state institution, the
  391  traveler shall be reimbursed only for the actual expenses of
  392  such lodging or meals, not to exceed the maximum provided for in
  393  this subsection.
  394         (b) All travelers shall be allowed the following amounts
  395  for subsistence while on Class C travel on official business as
  396  provided in paragraph (5)(b):
  397         1. Breakfast...........................................$6
  398         2. Lunch..............................................$11
  399         3. Dinner.............................................$19
  400         (c)Actual expenses for lodging associated with the
  401  attendance of an employee of a state agency or the judicial
  402  branch at a meeting, conference, or convention organized or
  403  sponsored in whole or in part by a state agency or the judicial
  404  branch may not exceed $150 per day. However, an employee may
  405  expend his or her own funds for any lodging expenses that exceed
  406  $150 per day. For purposes of this paragraph, a meeting does not
  407  include travel activities for conducting an audit, examination,
  408  inspection, or investigation or travel activities related to a
  409  litigation or emergency response.
  410         (d)(c) No one, whether traveling out of state or in state,
  411  shall be reimbursed for any meal or lodging included in a
  412  convention or conference registration fee paid by the state.
  413         (16)STATEWIDE TRAVEL MANAGEMENT SYSTEM.—
  414         (a)For purposes of this subsection, the term “statewide
  415  travel management system” means the system acquired by the
  416  Executive Office of the Governor to:
  417         1.Standardize and automate agency travel management;
  418         2.Allow for travel planning and approval, expense
  419  reporting, and reimbursement; and
  420         3.Allow a person to query travel information by public
  421  employee or officer name and position title, purpose of travel,
  422  dates and location of travel, mode of travel, confirmation of
  423  agency head or designee authorization if required, and total
  424  travel cost.
  425         (b)All agencies and the judicial branch must report public
  426  officer and employee travel information in the statewide travel
  427  management system, including, but not limited to, officer or
  428  employee name and position title, purpose of travel, dates and
  429  location of travel, mode of travel, confirmation of agency head
  430  or designee authorization if required, and total travel cost. At
  431  a minimum, such information must be reported in the statewide
  432  travel management system on a monthly basis.
  433         (c)All executive branch state agencies and the judicial
  434  branch must use the statewide travel management system for
  435  purposes of travel authorization and reimbursement.
  436         Section 6. Paragraph (c) of subsection (3) of section
  437  129.03, Florida Statutes, is amended to read:
  438         129.03 Preparation and adoption of budget.—
  439         (3) The county budget officer, after tentatively
  440  ascertaining the proposed fiscal policies of the board for the
  441  next fiscal year, shall prepare and present to the board a
  442  tentative budget for the next fiscal year for each of the funds
  443  provided in this chapter, including all estimated receipts,
  444  taxes to be levied, and balances expected to be brought forward
  445  and all estimated expenditures, reserves, and balances to be
  446  carried over at the end of the year.
  447         (c) The board shall hold public hearings to adopt tentative
  448  and final budgets pursuant to s. 200.065. The hearings shall be
  449  primarily for the purpose of hearing requests and complaints
  450  from the public regarding the budgets and the proposed tax
  451  levies and for explaining the budget and any proposed or adopted
  452  amendments. The tentative budget must be posted on the county’s
  453  official website at least 2 days before the public hearing to
  454  consider such budget and must remain on the website for at least
  455  45 days. The final budget must be posted on the website within
  456  30 days after adoption and must remain on the website for at
  457  least 2 years. The tentative budgets, adopted tentative budgets,
  458  and final budgets shall be filed in the office of the county
  459  auditor as a public record. Sufficient reference in words and
  460  figures to identify the particular transactions must shall be
  461  made in the minutes of the board to record its actions with
  462  reference to the budgets.
  463         Section 7. Paragraph (f) of subsection (2) of section
  464  129.06, Florida Statutes, is amended to read:
  465         129.06 Execution and amendment of budget.—
  466         (2) The board at any time within a fiscal year may amend a
  467  budget for that year, and may within the first 60 days of a
  468  fiscal year amend the budget for the prior fiscal year, as
  469  follows:
  470         (f) Unless otherwise prohibited by law, if an amendment to
  471  a budget is required for a purpose not specifically authorized
  472  in paragraphs (a)-(e), the amendment may be authorized by
  473  resolution or ordinance of the board of county commissioners
  474  adopted following a public hearing.
  475         1. The public hearing must be advertised at least 2 days,
  476  but not more than 5 days, before the date of the hearing. The
  477  advertisement must appear in a newspaper of paid general
  478  circulation and must identify the name of the taxing authority,
  479  the date, place, and time of the hearing, and the purpose of the
  480  hearing. The advertisement must also identify each budgetary
  481  fund to be amended, the source of the funds, the use of the
  482  funds, and the total amount of each fund’s appropriations.
  483         2. If the board amends the budget pursuant to this
  484  paragraph, the adopted amendment must be posted on the county’s
  485  official website within 5 days after adoption and must remain on
  486  the website for at least 2 years.
  487         Section 8. Subsections (3) and (5) of section 166.241,
  488  Florida Statutes, are amended to read:
  489         166.241 Fiscal years, budgets, and budget amendments.—
  490         (3) The tentative budget must be posted on the
  491  municipality’s official website at least 2 days before the
  492  budget hearing, held pursuant to s. 200.065 or other law, to
  493  consider such budget and must remain on the website for at least
  494  45 days. The final adopted budget must be posted on the
  495  municipality’s official website within 30 days after adoption
  496  and must remain on the website for at least 2 years. If the
  497  municipality does not operate an official website, the
  498  municipality must, within a reasonable period of time as
  499  established by the county or counties in which the municipality
  500  is located, transmit the tentative budget and final budget to
  501  the manager or administrator of such county or counties who
  502  shall post the budgets on the county’s website.
  503         (5) If the governing body of a municipality amends the
  504  budget pursuant to paragraph (4)(c), the adopted amendment must
  505  be posted on the official website of the municipality within 5
  506  days after adoption and must remain on the website for at least
  507  2 years. If the municipality does not operate an official
  508  website, the municipality must, within a reasonable period of
  509  time as established by the county or counties in which the
  510  municipality is located, transmit the adopted amendment to the
  511  manager or administrator of such county or counties who shall
  512  post the adopted amendment on the county’s website.
  513         Section 9. Section 215.86, Florida Statutes, is amended to
  514  read:
  515         215.86 Management systems and controls.—Each state agency
  516  and the judicial branch as defined in s. 216.011 shall establish
  517  and maintain management systems and internal controls designed
  518  to:
  519         (1)Prevent and detect fraud, waste, and abuse as defined
  520  in s. 11.45(1). that
  521         (2) Promote and encourage compliance with applicable laws,
  522  rules, contracts, and grant agreements.;
  523         (3)Support economical and economic, efficient, and
  524  effective operations.;
  525         (4)Ensure reliability of financial records and reports.;
  526         (5)Safeguard and safeguarding of assets. Accounting
  527  systems and procedures shall be designed to fulfill the
  528  requirements of generally accepted accounting principles.
  529         Section 10. Paragraph (a) of subsection (2) of section
  530  215.97, Florida Statutes, is amended to read:
  531         215.97 Florida Single Audit Act.—
  532         (2) As used in this section, the term:
  533         (a) “Audit threshold” means the threshold amount used to
  534  determine when a state single audit or project-specific audit of
  535  a nonstate entity shall be conducted in accordance with this
  536  section. Each nonstate entity that expends a total amount of
  537  state financial assistance equal to or in excess of $750,000 in
  538  any fiscal year of such nonstate entity shall be required to
  539  have a state single audit, or a project-specific audit, for such
  540  fiscal year in accordance with the requirements of this section.
  541  Every 2 years the Auditor General, After consulting with the
  542  Executive Office of the Governor, the Department of Financial
  543  Services, and all state awarding agencies, the Auditor General
  544  shall periodically review the threshold amount for requiring
  545  audits under this section and may recommend any appropriate
  546  statutory change to revise the threshold amount in the annual
  547  report submitted pursuant to s. 11.45(7)(h) to the Legislature
  548  adjust such threshold amount consistent with the purposes of
  549  this section.
  550         Section 11. Subsection (11) of section 215.985, Florida
  551  Statutes, is amended to read:
  552         215.985 Transparency in government spending.—
  553         (11) Each water management district shall provide a monthly
  554  financial statement in the form and manner prescribed by the
  555  Department of Financial Services to the district’s its governing
  556  board and make such monthly financial statement available for
  557  public access on its website.
  558         Section 12. Paragraph (d) of subsection (1) and subsection
  559  (2) of section 218.32, Florida Statutes, are amended to read:
  560         218.32 Annual financial reports; local governmental
  561  entities.—
  562         (1)
  563         (d) Each local governmental entity that is required to
  564  provide for an audit under s. 218.39(1) must submit a copy of
  565  the audit report and annual financial report to the department
  566  within 45 days after the completion of the audit report but no
  567  later than 9 months after the end of the fiscal year. In
  568  conducting an audit of a local governmental entity pursuant to
  569  s. 218.39, an independent certified public accountant shall
  570  determine whether the entity’s annual financial report is in
  571  agreement with the audited financial statements. If the audited
  572  financial statements are not in agreement with the annual
  573  financial report, the accountant shall specify and explain the
  574  significant differences that exist between the audited financial
  575  statements and the annual financial report.
  576         (2) The department shall annually by December 1 file a
  577  verified report with the Governor, the Legislature, the Auditor
  578  General, and the Special District Accountability Program of the
  579  Department of Economic Opportunity showing the revenues, both
  580  locally derived and derived from intergovernmental transfers,
  581  and the expenditures of each local governmental entity, regional
  582  planning council, local government finance commission, and
  583  municipal power corporation that is required to submit an annual
  584  financial report. In preparing the verified report, the
  585  department may request additional information from the local
  586  governmental entity. The information requested must be provided
  587  to the department within 45 days after the request. If the local
  588  governmental entity does not comply with the request, the
  589  department shall notify the Legislative Auditing Committee,
  590  which may take action pursuant to s. 11.40(2). The report must
  591  include, but is not limited to:
  592         (a) The total revenues and expenditures of each local
  593  governmental entity that is a component unit included in the
  594  annual financial report of the reporting entity.
  595         (b) The amount of outstanding long-term debt by each local
  596  governmental entity. For purposes of this paragraph, the term
  597  “long-term debt” means any agreement or series of agreements to
  598  pay money, which, at inception, contemplate terms of payment
  599  exceeding 1 year in duration.
  600         Section 13. Present subsection (3) of section 218.33,
  601  Florida Statutes, is renumbered as subsection (4), and a new
  602  subsection (3) is added to that section, to read:
  603         218.33 Local governmental entities; establishment of
  604  uniform fiscal years and accounting practices and procedures.—
  605         (3)Each local governmental entity shall establish and
  606  maintain internal controls designed to:
  607         (a)Prevent and detect fraud, waste, and abuse as defined
  608  in s. 11.45(1).
  609         (b)Promote and encourage compliance with applicable laws,
  610  rules, contracts, grant agreements, and best practices.
  611         (c)Support economical and efficient operations.
  612         (d)Ensure reliability of financial records and reports.
  613         (e)Safeguard assets.
  614         Section 14. Present subsections (8) through (12) of section
  615  218.39, Florida Statutes, are renumbered as subsections (9)
  616  through (13), respectively, and a new subsection (8) is added to
  617  that section, to read:
  618         218.39 Annual financial audit reports.—
  619         (8)If the audit report includes a recommendation that was
  620  included in the preceding financial audit report but remains
  621  unaddressed, the governing body of the audited entity, within 60
  622  days after the delivery of the audit report to the governing
  623  body, shall indicate during a regularly scheduled public meeting
  624  whether it intends to take corrective action, the intended
  625  corrective action, and the timeframe for the corrective action.
  626  If the governing body indicates that it does not intend to take
  627  corrective action, it must explain its decision at the public
  628  meeting.
  629         Section 15. Subsection (2) of section 218.391, Florida
  630  Statutes, is amended, and subsections (9) through (13) are added
  631  to that section, to read:
  632         218.391 Auditor selection procedures.—
  633         (2) The governing body of a charter county, municipality,
  634  special district, district school board, charter school, or
  635  charter technical career center shall establish an audit
  636  committee.
  637         (a)The audit committee for a county Each noncharter county
  638  shall establish an audit committee that, at a minimum, shall
  639  consist of each of the county officers elected pursuant to the
  640  county charter or s. 1(d), Art. VIII of the State Constitution,
  641  or their respective designees a designee, and one member of the
  642  board of county commissioners or its designee.
  643         (b)The audit committee for a municipality, special
  644  district, district school board, charter school, or charter
  645  technical career center shall consist of at least three members.
  646  One member of the audit committee must be a member of the
  647  governing body of an entity specified in this paragraph, who
  648  shall also serve as the chair of the committee.
  649         (c)An employee, chief executive officer, or chief
  650  financial officer of the county, municipality, special district,
  651  district school board, charter school, or charter technical
  652  career center may not serve as a member of an audit committee
  653  established under this subsection.
  654         (d) The primary purpose of the audit committee is to assist
  655  the governing body in selecting an auditor to conduct the annual
  656  financial audit required in s. 218.39; however, the audit
  657  committee may serve other audit oversight purposes as determined
  658  by the entity’s governing body. The public may shall not be
  659  excluded from the proceedings under this section.
  660         (9)For each audit required by s. 218.39, the auditor shall
  661  include the following information in the management letter
  662  prepared pursuant to s. 218.39(4):
  663         (a)The date the entity’s governing body approved the
  664  selection of the auditor and the date the entity and the auditor
  665  executed the most recent contract pursuant to subsection (7);
  666         (b)The first fiscal year for which the auditor conducted
  667  the audit under the most recently executed contract pursuant to
  668  subsection (7); and
  669         (c)The contract period, including renewals, and conditions
  670  under which the contract may be terminated or renewed.
  671         (10)On each occasion that an entity contracts with an
  672  auditor to conduct an audit pursuant to s. 218.39, an affidavit
  673  shall be executed by the chair of the entity’s governing body in
  674  a format prescribed in accordance with rules adopted by the
  675  Auditor General, affirming that the auditor was selected in
  676  compliance with the requirements of subsections (3)-(6). The
  677  affidavit must accompany the entity’s first audit report
  678  prepared by the auditor under the most recently executed
  679  contract pursuant to subsection (7). The affidavit shall include
  680  the following information:
  681         (a)The date the entity’s governing body approved the
  682  selection of the auditor;
  683         (b)The first fiscal year for which the auditor conducted
  684  the audit; and
  685         (c)The contract period, including renewals, and conditions
  686  under which the contract may be terminated or renewed.
  687         (11)If the entity fails to select the auditor in
  688  accordance with the requirements of subsections (3)-(6), the
  689  entity shall again perform the auditor selection process in
  690  accordance with this section to select an auditor to conduct
  691  audits for subsequent fiscal years if the original audit was
  692  performed under a multiyear contract.
  693         (a)If performing the auditor selection process again in
  694  accordance with this section would preclude the entity from
  695  timely completing the annual financial audit required by s.
  696  218.39, the entity shall again perform the auditor selection
  697  process in accordance with this section for the subsequent
  698  annual financial audit. A multiyear contract entered into
  699  between an entity and an auditor after the effective date of
  700  this act may not prohibit or restrict an entity from complying
  701  with the section.
  702         (b)If the entity fails to perform the auditor selection
  703  process again, pursuant to this subsection, the Legislative
  704  Auditing Committee shall determine whether the entity should be
  705  subject to state action pursuant to s. 11.40(2).
  706         (12)If the entity fails to provide the Auditor General
  707  with the affidavit required by subsection (10), the Auditor
  708  General shall request that the entity provide the affidavit. The
  709  affidavit must be provided within 45 days after the date of the
  710  request. If the entity does not comply with the Auditor
  711  General’s request, the Legislative Auditing Committee shall
  712  determine whether the entity should be subject to state action
  713  pursuant to s. 11.40(2).
  714         (13)If the entity provides the Auditor General with the
  715  affidavit required in subsection (10) but failed to select the
  716  auditor in accordance with the requirements of subsections (3)
  717  (6), the Legislative Auditing Committee shall determine whether
  718  the entity should be subject to state action pursuant to s.
  719  11.40(2).
  720         Section 16. Subsection (2) of section 286.0114, Florida
  721  Statutes, is amended to read:
  722         286.0114 Public meetings; reasonable opportunity to be
  723  heard; attorney fees.—
  724         (2) Members of the public shall be given a reasonable
  725  opportunity to be heard on a proposition before a board or
  726  commission. The opportunity to be heard need not occur at the
  727  same meeting at which the board or commission takes official
  728  action on the proposition if the opportunity occurs at a meeting
  729  that is during the decisionmaking process and is within
  730  reasonable proximity in time before the meeting at which the
  731  board or commission takes the official action. A board or
  732  commission may not require a member of the public to provide an
  733  advance written copy of his or her testimony or comments as a
  734  condition of being given the opportunity to be heard at a
  735  meeting. This section does not prohibit a board or commission
  736  from maintaining orderly conduct or proper decorum in a public
  737  meeting. The opportunity to be heard is subject to rules or
  738  policies adopted by the board or commission, as provided in
  739  subsection (4).
  740         Section 17. Paragraph (e) of subsection (4), paragraph (d)
  741  of subsection (5), and paragraph (d) of subsection (6) of
  742  section 373.536, Florida Statutes, are amended to read:
  743         373.536 District budget and hearing thereon.—
  744         (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
  745         (e) By September 1, 2012, Each district shall provide a
  746  monthly financial statement in the form and manner prescribed by
  747  the Department of Financial Services to the district’s governing
  748  board and make such monthly financial statement available for
  749  public access on its website.
  750         (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
  751  APPROVAL.—
  752         (d) Each district shall, by August 1 of each year, submit
  753  for review a tentative budget and a description of any
  754  significant changes from the preliminary budget submitted to the
  755  Legislature pursuant to s. 373.535 to the Governor, the
  756  President of the Senate, the Speaker of the House of
  757  Representatives, the chairs of all legislative committees and
  758  subcommittees having substantive or fiscal jurisdiction over
  759  water management districts, as determined by the President of
  760  the Senate or the Speaker of the House of Representatives, as
  761  applicable, the secretary of the department, and the governing
  762  body of each county in which the district has jurisdiction or
  763  derives any funds for the operations of the district. The
  764  tentative budget must be posted on the district’s official
  765  website at least 2 days before budget hearings held pursuant to
  766  s. 200.065 or other law and must remain on the website for at
  767  least 45 days.
  768         (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
  769  WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
  770         (d) The final adopted budget must be posted on the water
  771  management district’s official website within 30 days after
  772  adoption and must remain on the website for at least 2 years.
  773         Section 18. Paragraph (l) of subsection (12) of section
  774  1001.42, Florida Statutes, is amended to read:
  775         1001.42 Powers and duties of district school board.—The
  776  district school board, acting as a board, shall exercise all
  777  powers and perform all duties listed below:
  778         (12) FINANCE.—Take steps to assure students adequate
  779  educational facilities through the financial procedure
  780  authorized in chapters 1010 and 1011 and as prescribed below:
  781         (l) Internal auditor.—May employ an internal auditor to
  782  perform ongoing financial verification of the financial records
  783  of the school district and such other audits and reviews as the
  784  district school board directs for the purpose of determining:
  785         1.The adequacy of internal controls designed to prevent
  786  and detect fraud, waste, and abuse as defined in s. 11.45(1).
  787         2.Compliance with applicable laws, rules, contracts, grant
  788  agreements, district school board-approved policies, and best
  789  practices.
  790         3.The efficiency of operations.
  791         4.The reliability of financial records and reports.
  792         5.The safeguarding of assets.
  793  
  794  The internal auditor shall report directly to the district
  795  school board or its designee.
  796         Section 19. Paragraph (j) of subsection (9) of section
  797  1002.33, Florida Statutes, is amended to read:
  798         1002.33 Charter schools.—
  799         (9) CHARTER SCHOOL REQUIREMENTS.—
  800         (j) The governing body of the charter school shall be
  801  responsible for:
  802         1.Establishing and maintaining internal controls designed
  803  to:
  804         a.Prevent and detect fraud, waste, and abuse as defined in
  805  s. 11.45(1).
  806         b.Promote and encourage compliance with applicable laws,
  807  rules, contracts, grant agreements, and best practices.
  808         c.Support economical and efficient operations.
  809         d.Ensure reliability of financial records and reports.
  810         e.Safeguard assets.
  811         2.1. Ensuring that the charter school has retained the
  812  services of a certified public accountant or auditor for the
  813  annual financial audit, pursuant to s. 1002.345(2), who shall
  814  submit the report to the governing body.
  815         3.2. Reviewing and approving the audit report, including
  816  audit findings and recommendations for the financial recovery
  817  plan.
  818         4.a.3.a. Performing the duties in s. 1002.345, including
  819  monitoring a corrective action plan.
  820         b. Monitoring a financial recovery plan in order to ensure
  821  compliance.
  822         5.4. Participating in governance training approved by the
  823  department which must include government in the sunshine,
  824  conflicts of interest, ethics, and financial responsibility.
  825         Section 20. Present subsections (6) through (10) of section
  826  1002.37, Florida Statutes, are renumbered as subsections (7)
  827  through (11), respectively, present subsection (6) is amended,
  828  and a new subsection (6) is added to that section, to read:
  829         1002.37 The Florida Virtual School.—
  830         (6)The Florida Virtual School shall have an annual
  831  financial audit of its accounts and records conducted by an
  832  independent auditor who is a certified public accountant
  833  licensed under chapter 473. The independent auditor shall
  834  conduct the audit in accordance with rules adopted by the
  835  Auditor General pursuant to s. 11.45 and, upon completion of the
  836  audit, shall prepare an audit report in accordance with such
  837  rules. The audit report must include a written statement by the
  838  board of trustees describing corrective action to be taken in
  839  response to each of the recommendations of the independent
  840  auditor included in the audit report. The independent auditor
  841  shall submit the audit report to the board of trustees and the
  842  Auditor General no later than 9 months after the end of the
  843  preceding fiscal year.
  844         (7)(6) The board of trustees shall annually submit to the
  845  Governor, the Legislature, the Commissioner of Education, and
  846  the State Board of Education the audit report prepared pursuant
  847  to subsection (6) and a complete and detailed report setting
  848  forth:
  849         (a) The operations and accomplishments of the Florida
  850  Virtual School within the state and those occurring outside the
  851  state as Florida Virtual School Global.
  852         (b) The marketing and operational plan for the Florida
  853  Virtual School and Florida Virtual School Global, including
  854  recommendations regarding methods for improving the delivery of
  855  education through the Internet and other distance learning
  856  technology.
  857         (c) The assets and liabilities of the Florida Virtual
  858  School and Florida Virtual School Global at the end of the
  859  fiscal year.
  860         (d)A copy of an annual financial audit of the accounts and
  861  records of the Florida Virtual School and Florida Virtual School
  862  Global, conducted by an independent certified public accountant
  863  and performed in accordance with rules adopted by the Auditor
  864  General.
  865         (d)(e) Recommendations regarding the unit cost of providing
  866  services to students through the Florida Virtual School and
  867  Florida Virtual School Global. In order to most effectively
  868  develop public policy regarding any future funding of the
  869  Florida Virtual School, it is imperative that the cost of the
  870  program is accurately identified. The identified cost of the
  871  program must be based on reliable data.
  872         (e)(f) Recommendations regarding an accountability
  873  mechanism to assess the effectiveness of the services provided
  874  by the Florida Virtual School and Florida Virtual School Global.
  875         Section 21. Subsection (5) is added to section 1010.01,
  876  Florida Statutes, to read:
  877         1010.01 Uniform records and accounts.—
  878         (5)Each school district, Florida College System
  879  institution, and state university shall establish and maintain
  880  internal controls designed to:
  881         (a)Prevent and detect fraud, waste, and abuse as defined
  882  in s. 11.45(1).
  883         (b)Promote and encourage compliance with applicable laws,
  884  rules, contracts, grant agreements, and best practices.
  885         (c)Support economical and efficient operations.
  886         (d)Ensure reliability of financial records and reports.
  887         (e)Safeguard assets.
  888         Section 22. Subsection (2) of section 1010.30, Florida
  889  Statutes, is amended to read:
  890         1010.30 Audits required.—
  891         (2) If a school district, Florida College System
  892  institution, or university audit report includes a
  893  recommendation that was included in the preceding financial
  894  audit report but remains unaddressed an audit contains a
  895  significant finding, the district school board, the Florida
  896  College System institution board of trustees, or the university
  897  board of trustees, within 60 days after the delivery of the
  898  audit report to the school district, Florida College System
  899  institution, or university, shall indicate conduct an audit
  900  overview during a regularly scheduled public meeting whether it
  901  intends to take corrective action, the intended corrective
  902  action, and the timeframe for the corrective action. If the
  903  district school board, Florida College System institution board
  904  of trustees, or university board of trustees indicates that it
  905  does not intend to take corrective action, it shall explain its
  906  decision at the public meeting.
  907         Section 23. Subsection (3) of section 218.503, Florida
  908  Statutes, is amended to read:
  909         218.503 Determination of financial emergency.—
  910         (3) Upon notification that one or more of the conditions in
  911  subsection (1) have occurred or will occur if action is not
  912  taken to assist the local governmental entity or district school
  913  board, the Governor or his or her designee shall contact the
  914  local governmental entity or the Commissioner of Education or
  915  his or her designee shall contact the district school board, as
  916  appropriate, to determine what actions have been taken by the
  917  local governmental entity or the district school board to
  918  resolve or prevent the condition. The information requested must
  919  be provided within 45 days after the date of the request. If the
  920  local governmental entity or the district school board does not
  921  comply with the request, the Governor or his or her designee or
  922  the Commissioner of Education or his or her designee shall
  923  notify the members of the Legislative Auditing Committee, which
  924  who may take action pursuant to s. 11.40(2) 11.40. The Governor
  925  or the Commissioner of Education, as appropriate, shall
  926  determine whether the local governmental entity or the district
  927  school board needs state assistance to resolve or prevent the
  928  condition. If state assistance is needed, the local governmental
  929  entity or district school board is considered to be in a state
  930  of financial emergency. The Governor or the Commissioner of
  931  Education, as appropriate, has the authority to implement
  932  measures as set forth in ss. 218.50-218.504 to assist the local
  933  governmental entity or district school board in resolving the
  934  financial emergency. Such measures may include, but are not
  935  limited to:
  936         (a) Requiring approval of the local governmental entity’s
  937  budget by the Governor or approval of the district school
  938  board’s budget by the Commissioner of Education.
  939         (b) Authorizing a state loan to a local governmental entity
  940  and providing for repayment of same.
  941         (c) Prohibiting a local governmental entity or district
  942  school board from issuing bonds, notes, certificates of
  943  indebtedness, or any other form of debt until such time as it is
  944  no longer subject to this section.
  945         (d) Making such inspections and reviews of records,
  946  information, reports, and assets of the local governmental
  947  entity or district school board as are needed. The appropriate
  948  local officials shall cooperate in such inspections and reviews.
  949         (e) Consulting with officials and auditors of the local
  950  governmental entity or the district school board and the
  951  appropriate state officials regarding any steps necessary to
  952  bring the books of account, accounting systems, financial
  953  procedures, and reports into compliance with state requirements.
  954         (f) Providing technical assistance to the local
  955  governmental entity or the district school board.
  956         (g)1. Establishing a financial emergency board to oversee
  957  the activities of the local governmental entity or the district
  958  school board. If a financial emergency board is established for
  959  a local governmental entity, the Governor shall appoint board
  960  members and select a chair. If a financial emergency board is
  961  established for a district school board, the State Board of
  962  Education shall appoint board members and select a chair. The
  963  financial emergency board shall adopt such rules as are
  964  necessary for conducting board business. The board may:
  965         a. Make such reviews of records, reports, and assets of the
  966  local governmental entity or the district school board as are
  967  needed.
  968         b. Consult with officials and auditors of the local
  969  governmental entity or the district school board and the
  970  appropriate state officials regarding any steps necessary to
  971  bring the books of account, accounting systems, financial
  972  procedures, and reports of the local governmental entity or the
  973  district school board into compliance with state requirements.
  974         c. Review the operations, management, efficiency,
  975  productivity, and financing of functions and operations of the
  976  local governmental entity or the district school board.
  977         d. Consult with other governmental entities for the
  978  consolidation of all administrative direction and support
  979  services, including, but not limited to, services for asset
  980  sales, economic and community development, building inspections,
  981  parks and recreation, facilities management, engineering and
  982  construction, insurance coverage, risk management, planning and
  983  zoning, information systems, fleet management, and purchasing.
  984         2. The recommendations and reports made by the financial
  985  emergency board must be submitted to the Governor for local
  986  governmental entities or to the Commissioner of Education and
  987  the State Board of Education for district school boards for
  988  appropriate action.
  989         (h) Requiring and approving a plan, to be prepared by
  990  officials of the local governmental entity or the district
  991  school board in consultation with the appropriate state
  992  officials, prescribing actions that will cause the local
  993  governmental entity or district school board to no longer be
  994  subject to this section. The plan must include, but need not be
  995  limited to:
  996         1. Provision for payment in full of obligations outlined in
  997  subsection (1), designated as priority items, which are
  998  currently due or will come due.
  999         2. Establishment of priority budgeting or zero-based
 1000  budgeting in order to eliminate items that are not affordable.
 1001         3. The prohibition of a level of operations which can be
 1002  sustained only with nonrecurring revenues.
 1003         4. Provisions implementing the consolidation, sourcing, or
 1004  discontinuance of all administrative direction and support
 1005  services, including, but not limited to, services for asset
 1006  sales, economic and community development, building inspections,
 1007  parks and recreation, facilities management, engineering and
 1008  construction, insurance coverage, risk management, planning and
 1009  zoning, information systems, fleet management, and purchasing.
 1010         Section 24. The Legislature finds that a proper and
 1011  legitimate state purpose is served when internal controls are
 1012  established to prevent and detect fraud, waste, and abuse and to
 1013  safeguard and account for government funds and property.
 1014  Therefore, the Legislature determines and declares that this act
 1015  fulfills an important state interest.
 1016         Section 25. This act shall take effect July 1, 2018.